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Think Tree Technologies , Inc

SAP Sales & Distribution

By Dilip K Sadh
Dilip K Sadh
Background RelevantRelevant
Selected Experience
SAP Experience
Dilip is President of Kabeer Consulting Inc , Think Tree Technologies, Inc and
Kabeer InfoTech Systems India Pvt Ltd. Selected clients served as SAP implementer
Dilip Sadh was an Associate Partner at IBM in the USA. Also worked as Sr • Reebok / Adidas : USA
Director with Accenture and Capegmini in USA.
• Bose Corp : USA
He has total of 15 years of experience in SAP implementation.
• Kellogg’s : USA / Maxico / Brazil
Dilip is a visiting Professor at Indiana University of Pennsylvania (IUP) for MBA
course. • Lucent Technologies: USA
He has been visiting faculty to various universities across the globe like • Colgate Palmolive : Russia , Poland
Massachusetts Institute of Technologies (MIT), North Eastern, IUP,IIT Delhi,
IMT Ghaziabad , FORE school of Management etc.
• Clorox : USA

He has taught over 3000 students in SAP SD/CRM , MM/WM, CS modules • Stanley Works : USA & Canada
etc. • Degussa Chemicals : USA & Germany
He is written several papers on Supply chain Management topics.
• Southern wine Sprits of America : USA
Dilip holds a Bachelors of degree in Mechanical Engineering.
• Bhartia Cutler Hammer : India
• Samsung India : India
SAP Platinum level Expertise
• CDAC India
Functional/Technical Knowledge: Industry Experience:

• SAP AFS • Apparel & Footwear Selected Clients served as SAP Knowledge provider (Trainer / Thought
• Sales & Distribution • Consumer Packaged leadership)

• Material Management • Chemicals • Indian Oil corporation Ltd : India


• Medical Devices • Engineers India Ltd : India
• Logistics Execution
• Telecommunication • National Thermal Power Corporation (NTPC) : India
• SAP CRM • Electronics products
• Gas Authority of India Ltd (GAIL) : India
• SAP GTS • Industrial Products
• Whole Sales
• SAP CS

Dilip K Sadh2
Summary

 Overview

 SD (Sales and Distribution) functionality

 Integration in SAP

 Conclusions

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Summary

 Overview

 SD (Sales and Distribution) functionality

 Integration in SAP

 Conclusions

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Overview : the SAP - R/3 system

 SAP is a fully integrated system:

- Finance and Control


- Sales and Distribution,
- Materials Management,
- Production, etc... SD FI
Sales & Financial
Distribution Accounting

MM CO
Materials Controlling
Mgmt.
PP AA
Assets
Product Accounting
Planning
IM
R/3 Invest
Management
QM
Quality
PS
Project
Mgmt. System
PM OC
Office &
Plant Mainte-
nance Communi-
cation
HR
Human
IS
Industry
Resources Solutions

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Summary

 Overview

 SD (Sales and Distribution) functionality

 Integration in SAP

 Conclusions

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SD Functionality
The SAP SD module enables us to integrate and optimise all activities from
sales, through delivery and billing.

Master data Functionality

Customer Pre-Sales

Sales information system


Request
Material Quotations
Cust/material Sales
info records -Order -Contract
-Delivery schedule
Pricing

Texts Delivery Delivery


Picking Transport
Classification
Single billing documents Billing
Collective billing
Debit & credit notes

ORGANISATIONAL STRUCTURE
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SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Price determination
Delivery scheduling

Delivery
Billing
The information system

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SD organisational structure : Sales organisation
 A sales organisation:
- can have its own prices, customer- and material sales data while sharing the customers
and materials with other companies on the same SAP system
- is an important selection criterium for reporting

Company 1

Sales Org.

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SD organisational structure : Distribution channels

 Distribution channels allow us to split customers and


materials, for example :
- Retail customers
- Trade houses
- Direct sales
- E-Sales

Sales org. Sales


organisation
Distribution
Retail Trade Direct chanel

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SD organisational structure : Divisions

 The division can be used if a further split of activities and product lines is
desired and it can be usefull to cover special requirements on:
- pricing,
- partial deliveries and
- payment terms

Sales
Sales org.
organisation

Trade Retail Direct Distribution


channels

CAR Motorcycle Chemical Divisions

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SD organisational structure : The sales force

Sales office New York Chicago

North
Sales district South North South

Sales group Mike Tom Mike

Julie

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SD organisational structure : Shipping points

Philadelphia Boston
Plant

Shipping point Truck Rail

Loading point Dock 1 Dock 2

A shipping point is a place where you have one or more


loading points where goods are actually loaded.

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SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Shipping point determination


Price determination
Delivery scheduling

Delivery
Billing
The information system

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SD Master data

The risk of data redundancy is clearly reduced by centralised master


data maintenance and sharing master data across the different SAP
modules.

From a sales point of view, we can distinguish between two kinds of


master data which are of major importance:

 Customer master:
- Sold-to, ship-to etc.

 Material master:
- Finished goods
- Raw materials

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SD Master data : Customer master
Customer master data can be maintained on
a generic or a sales area/company specific level. :

General data
Address
Marketing
Control
Contacts

Sales area data Admin.data

Sales Administration
Shipping Correspondence
Billing Payment
Business Partners Insurance

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SD Customer master: Partner functions

In order to meet our customer requirements, we can define several


partner functions for one customer :

Sold-to

....... Ship-to

Partner
Employee Payer
functions

Carrier Bill-to

Ship-to 2

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SD Material master

This central piece of master data covers the requirements for many
functional areas: sales, production, purchasing, administration etc.

General data Sales


data
Warehouse
Material number data
Description Purchase
Unit of measure
Weight
data
Volume
Etc...
Etc.
. Financial
. data
.

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SD FUNCTIONALITY :

Organisational structure
Master data
SD document flow
Pre sales

Sales: customer orders

Shipping point determination


Price determination
Delivery scheduling

Delivery
Billing
The information system

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Document flow: sales, delivery, billing.

Request
Sales documents

Quotation Contract

Free of Order Delivery


Returns schedule
charge confirmation

Delivery documents
Delivery note ( CMR )

Billing documents Debit Credit


Invoice note note

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SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Shipping point determination


Price determination
Delivery scheduling

Delivery
Billing
The information system

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PRE-SALES SALES DELIVERY BILLING PAYMENT

The quotation
Pre sales activities :
- register customer address
- the details for the quotation
- the quotation

Pre-sales
Customer: 1825
Valid from : 01/06/03
to : 31/12/03
Item Material Quantity
With material nr
10 Mat01 10
Without material nr 20 - 2
Description :
Mgr.desk oak Text
item
Item text: expected price
2980 euro/each

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SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Price determination
Delivery scheduling

Delivery
Billing
The information system

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PRE-SALES SALES DELIVERY BILLING PAYMENT

The customer order


The customer order usually contains:
- customer & material details ,
- price details per item
- delivery relevant information
- billing related information

Customer Deliv.+ payment


customer : 1825
details etc.
Item Material Quantity
10 Mat01 10
Price details
Material 20 Mat02 20
30 Mat03 30
Cust/mat.nr etc.

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SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Price determination
Delivery scheduling

Delivery
Billing
The information system

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PRE-SALES SALES DELIVERY BILLING PAYMENT

Price determination
SAP automatically determines the price, surcharges,
deductions and taxes if relevant for this customer/material.

Condition type XXX1 Summer Promotion


Sales organisation MY01 MY Ice.com
Distr. channel F1 Direct sales
Conditions
Customer FRCL1 DUBOIS & FILS
Material 1234 ORDINATEUR

Deductions&Surcharges
Price - Per customer Validity period :
- List price - Per material 01/07/04 - 01/10094
-Customer - Per customer group Price scale from:
-Specific price 1000 EUR 1,0 %
-..... - Per material/customer 2000 EUR 2,0 %
3000 EUR 3,0 %
-.....

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SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Price determination
Delivery scheduling

Delivery
Billing
The information system

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PRE-SALES SALES DELIVERY BILLING PAYMENT

Backward scheduling from delivery date


Based on the requested delivery date and the time consumption during the delivery
process, we can confirm an availabilty date to the customer.

Requested Transport Availabilty Loading date Date out of Delivery date


deliv.date planning stock

Check Transport
availability
times
Loading time

Picking time

Transport planning

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SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Price determination
Delivery scheduling

Delivery
Billing
The information system

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PRE-SALES SALES DELIVERY BILLING PAYMENT

Delivery = all activities in the transport & shipping department.


Packing
Custmr Goods
order receipt

Picking

Goods issue

Delivery documents

Updated stock figures

Delivery

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PRE-SALES SALES DELIVERY BILLING PAYMENT

Delivery fullfillment

Customer order Delivery


Complete delivery

Delivery

Partial delivery Customer order Delivery

Delivery

Customer order

Combined delivery Delivery


Customer order

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PRE-SALES SALES DELIVERY BILLING PAYMENT

The delivery due list


Overview and selection criteria

Date Shipp. Custmr Date Shipp. Custmr


point order point order
15 Nov 001 120 15 Nov 001 120 Delivery
15 Nov 002 121
16 Nov 001 122 16 Nov 001 122 Delivery
17 Nov 001 123 17 Nov 001 123
Delivery
18 Nov 001 124

Protokol
Shipping point : 001
Selection
criteria Dates :
From 15 Nov-17 Nov

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PRE-SALES SALES DELIVERY BILLING PAYMENT

Goods issue

 The consequences of a goods issue :

- The stock quantity is reduced


- The stock value is reduced
- The stock reservations are reduced
- The document flow is updated
- The document will be included in the billing due list

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SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Price determination
Delivery scheduling

Delivery
Billing
The information system

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PRE-SALES SALES DELIVERY BILLING PAYMENT

Billing :
-creating invoices for deliveries and services

-creating debit- and credit notes

- update the billing due list

- transfer billing data to finance

The release of billing documents to accounting can be automated.


Billing

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PRE-SALES SALES DELIVERY BILLING PAYMENT

Different kinds of billing


Billing per delivery Collective billing
Delivery Invoice Sales
order Delivery
Sales
order

Delivery Invoice

Sales
Delivery Invoice
order

Billing split
Invoice

Sales
Delivery Sales
order Delivery
order
Invoice

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PRE-SALES SALES DELIVERY BILLING PAYMENT

The consequences of billing

 A billing document results in :

- An accounting document
- Update the billing status of the customer
- Update of the statistics (sales, Intrastat)
- Update profit center data etc.

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PRE-SALES SALES DELIVERY BILLING PAYMENT

And… , a last step in the management


cycle of the customer orders.

Payment by the customer means :

- linking payments to billing documents


- verify and action differences if needed

Payment

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PRE-SALES SALES DELIVERY BILLING PAYMENT

Cde
Client

The document flow


Quotation : 170000
Sales order : 900
. Delivery : 80000459
..Picking request : 17951109
..Goods issue : 49001828
.. Invoice : 90000333
…Accounting doc : 1000000276
- The documents represent the SAP transactions.
- The transactions are linked and form a documents chain
- The document chain froms the document flow

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SD FUNCTIONALITY :

Organisational structure
Master data
SD documents
Pre sales

Sales: customer orders

Shipping point determination


Price determination
Delivery scheduling

Delivery
Billing
The information system

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The information system
The Logistics Information System (LIS) is a permanent on line
management and analysis tool within SAP.

Time 325500 Ratios


Characteristics 32
interval 1252

Sales Distr. Custo Customer Customer Order


orf. Chan mer Orders invoices book
nel

Please note that the LIS functionality is limited.


Further functionality is available via Controlling &
Profitability Analysis (Co-PA) and the datawarehouse (BW)

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Summary

 Overview

 Order to cash

 SD (Sales and Distribution) functionality

 Integration in SAP

 Conclusions

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Integration in the logistic chain
Here we come to one of the big advantages of SAP, complete integration.

Finance & Control


Resource management Capacity, Material, Production & equipment

Sales & Customer Billing


order Delivery
Distribution

Dispo Create Order Production


Production check Production Capacities planning order
plan

Stock Purch. Process Pur. Receipt Invoice


Purchase update Req. Pur.req. order Verific.

QM

Logistics management Sales, Production, Purchase, Warehousing

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?
Thank you !

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